U.S. Farm Income Projected Higher in 2017

Benjamin Parkin reported today at The Wall Street Journal Online that, “U.S. farm incomes will rise in 2017, halting three consecutive years of decline, as a slump in crop and animal prices eases.

“The U.S. Department of Agriculture said net farm income will rise to $63.4 billion, up 3% from a year earlier but still just about half of 2013’s record $124 billion.

“Rising profits are a relief to many farmers squeezed by the multiyear slump in the agricultural economy. Analysts nevertheless expect a continuing grain glut to pressure prices this year, with forecasts showing another year of bumper U.S. corn and soybean harvests after those crops appeared to recover from early weather troubles. Meanwhile, rising production in countries like Brazil and Russia is adding to global stockpiles.”

The Journal article noted that, “Livestock and animal product receipts are expected to be mostly higher. Receipts for broiler chickens and hogs will rise 15%, a reflection of higher prices and quantities sold. The agency said it expects cattle and calve receipts to rise 6%, as higher sales quantities offsets a slight drop in price.”

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